Australia Tax Rate Calculator
In 2025–26 an Australian resident on $90,000 pays $17,788.00 of income tax plus $1,800.00 of Medicare levy — $19,588.00 in total, leaving $70,412.00: an effective tax rate of 21.76% and a marginal rate of 32%. Enter your own income below; the rates update instantly.
Your taxable income for the year — for most employees that is your salary, before tax is taken out.
Residents get the $18,200 tax-free threshold. Non-residents are taxed from the first dollar and do not pay the Medicare levy.
Most residents pay the levy at 2% of taxable income. Choose Exempt only if an ATO exemption category covers you.
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Your Australian tax — 2025–26
$70,412.00 net income per year after $19,588.00 of tax
Marginal tax rate: 32% on your next dollar (30% income tax + 2% Medicare levy). Effective tax rate: 21.76% — your total tax as a share of your taxable income.
| Line | Per year |
|---|---|
| Taxable income | $90,000.00 |
| Income tax | −$17,788.00 |
| Medicare levy (2%) | −$1,800.00 |
| Total tax | −$19,588.00 |
| Net (after-tax) income | $70,412.00 |
Opens your browser's print view with a clean summary of this calculation — choose “Save as PDF” there to keep a copy.
Worked example: the $90,000 breakdown, line by line
| Taxable income | $90,000.00 |
| Income tax (ATO 2025–26 resident rates) | −$17,788.00 |
| Medicare levy at 2% | −$1,800.00 |
| Net (after-tax) income | $70,412.00 a year |
Whether you searched for a tax rate calculator for Australia or an Australian tax calculator, the working is the same: only the slice of income inside each bracket is taxed at that bracket's rate — the first $18,200 is taxed at zero, the next slice at 16c in the dollar, and so on up.
Tax rates at other Australian incomes
| Taxable income | Income tax | Medicare levy | Net income | Effective rate |
|---|---|---|---|---|
| $50,000.00 | $5,788.00 | $1,000.00 | $43,212.00 | 13.58% |
| $90,000.00 | $17,788.00 | $1,800.00 | $70,412.00 | 21.76% |
| $150,000.00 | $36,838.00 | $3,000.00 | $110,162.00 | 26.56% |
Australian resident, Medicare levy applies, 2025–26 rates, before tax offsets. Watch the effective rate climb far more slowly than the headline bracket rates — that gap is the bracket system doing its job.
How Australian income tax is worked out
1. Brackets and the tax-free threshold
Residents pay no tax on the first $18,200 (the tax-free threshold), then 16c in the dollar up to $45,000, 30c to $135,000, 37c to $190,000 and 45c above that. Each rate applies only to the income inside its bracket — earning $135,001 does not put your whole salary into the 37c bracket, just that one extra dollar. Non-residents have no threshold and pay 30c from the first dollar.
2. Marginal rate vs effective rate
The marginal rate is what your next dollar is taxed at — the bracket you currently sit in, plus the 2% Medicare levy when it applies. The effective rate is your total tax divided by your total income: the average across every bracket you passed through. The effective rate is the one that describes your actual tax bill; the marginal rate is the one that prices a pay rise, a bonus or extra hours.
3. The Medicare levy
On top of income tax, most residents pay the Medicare levy at 2% of taxable income. Foreign residents are not required to pay it, and some residents are exempt. The ATO also reduces the levy for low incomes, phasing it in just above the low-income threshold — this calculator charges the full 2% whenever the levy applies and does not model that reduction, so at low incomes it may show slightly more levy than an assessment would. Tax offsets such as the low income tax offset are likewise applied by the ATO in your return, not in the rate tables this calculator uses.
Australia tax rates used by this calculator (2025–26)
Resident rates
| Taxable income | Tax on this income |
|---|---|
| 0 – $18,200 | Nil |
| $18,201 – $45,000 | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,638 plus 45c for each $1 over $190,000 |
Non-resident (foreign resident) rates
| Taxable income | Tax on this income |
|---|---|
| 0 – $135,000 | 30c for each $1 |
| $135,001 – $190,000 | $40,500 plus 37c for each $1 over $135,000 |
| $190,001 and over | $60,850 plus 45c for each $1 over $190,000 |
Sources: Australian Taxation Office, “Tax rates – Australian resident” and “Tax rates – foreign resident” (ato.gov.au), tables for the 2025–26 income year. The ATO resident tables do not include the Medicare levy of 2%, which this calculator adds when it applies. The ATO has also published resident rates for 2026–27 (the second bracket falls to 15c in the dollar); this calculator uses the complete 2025–26 tables for both residencies. Last verified: 9 November 2026. Figures are the rate tables applied before tax offsets — your actual assessment can differ.
Frequently asked questions
What is the tax rate on $90,000 in Australia?
There is no single rate — Australian tax is sliced into brackets. On $90,000 as a resident in 2025–26 the income tax is $17,788.00 and the Medicare levy is $1,800.00, a total of $19,588.00, leaving $70,412.00. The marginal rate is 30% (the rate on the next dollar earned, 32% including the levy), while the effective rate — the slice of the whole income paid in tax — is 21.76%. Run your own income through the calculator above.
What is the difference between my marginal and effective tax rate?
Your marginal rate is the rate charged on your NEXT dollar of income — the top bracket you have reached. Your effective rate is your total tax divided by your whole income, and it is always lower, because the first dollars are taxed at lower rates or not at all. On $90,000 the marginal income-tax rate is 30% but the effective rate is 21.76% including the Medicare levy (19.76% for income tax alone). A pay rise is only ever taxed at the marginal rate on the extra amount — never at that rate on your whole salary.
What is the Medicare levy, and who pays it?
The Medicare levy is an extra 2% of your taxable income that helps fund Australia's public health system. Most Australian residents pay it on top of their income tax. Foreign residents are not required to pay it (ATO), and some residents in exemption categories pay none. There is also a levy reduction for low incomes that phases the levy in just above the low-income threshold — this calculator charges the full 2% whenever the levy applies and does not model that reduction, so on low incomes it can overstate the levy; the ATO applies the reduction in your tax return. The Medicare levy is separate from the Medicare levy surcharge, which can add 1%–1.5% for higher earners without private hospital cover and is not included here.
How much tax do non-residents pay in Australia?
Non-residents (foreign residents for tax purposes) get no tax-free threshold: in 2025–26 they pay 30c on every dollar up to $135,000, then 37c and 45c at the higher brackets, and they do not pay the Medicare levy. On $100,000 of Australian income that is $30,000.00 of tax, leaving $70,000.00 — an effective rate of 30.00%, far more than a resident pays on the same income. Working holiday makers are taxed under their own schedule, which is not covered here.
Do these figures include tax offsets, like LITO?
No. The figures are the ATO rate tables applied directly to the income you enter — the same starting point the ATO's own published rates give. Tax offsets reduce the final bill for many people: the low income tax offset (LITO) is worth up to $700 for residents and phases out completely by $66,667 of income. HELP/HECS repayments, the Medicare levy surcharge and other assessment items are also outside the tables. Treat the result as the tax on your income before those adjustments; your notice of assessment has the final figures.
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